So those are the potential threats. But that does not make them my primary count. In fact, my primary count calls for some AM selling today and then another reversal upward. From the micro count below you can see why I wrote in the last post that EW defined stops were at $7.75 which is marked by the green horizontal bar. A move to that level would break down from the parallel channel and wave pink 4 would move into the range of pink 1. This would tell us that the model is wrong and to exit with our remaining profits so that we can have another look at what the heck is going on.
What this model actually expects to happen is for green 3, whose beginning and expected termination are pointed to by the long black lines below, to take out both the lower and the upper rails of the falling wedge. I'm too busy these days at work to even try to trade the pullback. I have my core position and it will stop out at $7.75 if that is the decision of the herd, however unexpected that may be. Odds of herd movement are not certainties thereof. But I am putting in a limit buy order for more shares (not margin!!) at $8.15 to try to add to my position during pink 4 of green 3 since I don't have time to check on this in person today. If I don't get them that is fine with me. I actually have enough already for this stage of the game. Safety is always more important than pursuit of gain.
1 comment:
Many thanks for all the clarifications with JNUG.
Greatly appreciated!
L.
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